NFIB: Permanent small business tax deduction could boost Missouri jobs, economy

FOX23 News at 9 p.m

JEFFERSON CITY, Mo., (KBSI) — The National Federation of Independent Business released a report Tuesday outlining the projected economic impact of the now-permanent 20% Small Business Tax Deduction in Missouri.

According to the report, the deduction is expected to benefit more than 590,000 small businesses across the state and generate significant tax savings. The organization said Missouri could see an average of 23,000 new jobs created annually over the next decade if the policy remains in place.

The report also projects an annual increase in gross domestic product of $1.1 billion during the first 10 years, rising to $2.3 billion per year after 2035.

NFIB State Director Brad Jones said the deduction helps small businesses compete with larger retailers by allowing them to keep more of their earnings and reinvest in their operations.

“The 20% Small Business Deduction helps level the playing field between small businesses and their big box store competitors,” Jones said. “By making the deduction permanent, Congress and President Donald Trump replaced the threat of a tax increase with long-term certainty.”

The deduction, first introduced in 2017, allows eligible small businesses to deduct up to 20% of their qualified business income. It was originally set to expire at the end of 2025.

Congress approved legislation making the deduction permanent, and President Trump signed it into law on July 4, 2025.

NFIB said the change provides long-term stability for small business owners and allows them to invest more in employees, operations and local communities.